Capital Contribution Agreement

Document Type
Microsoft Word (Editable)
Pages
5
Price: KES 400
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Document Overview

A Capital Contribution Agreement is a formal legal document used when two or more people (such as business partners, shareholders, or investors) agree to contribute money, property, or other assets to start or grow a business.

It records how much each person contributes, what they will own or receive in return, and the terms under which those contributions can be changed, withdrawn, or refunded.

It is commonly used in partnerships, limited companies, joint ventures, and startups in Kenya to establish clear ownership and prevent future disputes.

Purposes of a Capital Contribution Agreement:

1. To record each party’s financial or asset contribution to the business.

2. To define ownership and profit-sharing proportions.

3. To prevent future disputes among partners or investors.

5. To protect contributors’ rights in case of default or withdrawal.

6. To ensure compliance with the Companies Act, 2015 and Partnership Act, 2012 of Kenya.
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